This ASX gold miner just struck lithium, and its share price is surging 31%

Lithium prices have surged amid a booming global market for batteries.

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Key points

  • Riversgold share price leaps 31% 
  • The ASX resource explorer's lithium ambitions look to be paying off 
  • The miner only recently acquired 4 lithium prospective projects in WA 

The Riversgold Ltd (ASX: RGL) share price is off to the races today.

Riversgold closed yesterday at 3.6 cents and is currently trading for 4.7 cents. That puts the Riversgold share price up 30.6% in late morning trade.

ASX investors look to be snapping up shares in the junior explorer today after the company reported on its latest rock chip sampling results.

What assay results were announced?

The Riversgold share price is surging after the miner reported on high grade assay results for lithium. The results were strong across all the rock chip samples taken from surface sampling at its Tambourah Lithium Project in Western Australia.

The miner only acquired 4 lithium-prospective exploration tenement applications covering 164 square kilometres in the Pilbara region earlier in 2022.

According to the release, the assay results confirmed numerous lithium-bearing pegmatite dykes, with the rock chip samples returning values between 1.5% Li2O and 2% Li2O.

The Riversgold share price could also be getting an additional boost from the company reporting that so far, only 200 metres of what could be a 26 kilometre long mineralised corridor have been evaluated.

Commenting on the results, Riversgold CEO, Julian Ford said:

These initial rock chip results from Tambourah are highly encouraging and are only from a 200-metre section of what is potentially a 26-kilometre-long mineralised corridor within the tenement.

We are fortunate to have access to a substantial database of modern geophysical data for the Tambourah Project and our strategy is to fast-track exploration by leveraging this knowledge base and the easy access afforded by the gazetted Marble Bar road.

Ford added that he expects more material news to come as Riversgold pursues its lithium exploration strategies.

The miner is planning to kick off a follow up reconnaissance trip next week, where crews will explore along the strike extension and other priority target areas.

Riversgold share price snapshot

With today’s intraday gains factored in, the Riversgold share price is up 135% in 2022.

That compares to a 3.7% year-to-date loss posted by All Ordinaries Index (ASX: XAO).

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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